The Commissioner of Income Tax-IV vs. Mentor Graphics (India ) Pvt.Ltd

ITTA/264/2012HC TelanganaHBHC01044684201218 February 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The Court noted that the tax effect in the instant appeal was well below the monetary limit of Rs. 2.00 crore prescribed for filing appeals before the High Court, as per Circular No. 9 of 2024. Therefore, the appeal was dismissed on this ground. The Court also stated that if the appeal falls within any exception provided in Circular No. 5 of 2024, the Income Tax Department would be at liberty to seek revival of the appeal. No order as to costs was made. Consequently, any pending miscellaneous petitions were also closed.

What were the facts?

This case involves an appeal filed by the Commissioner of Income Tax-IV, Hyderabad (the Revenue) against an order dated August 18, 2009, passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. The ITAT's order was in relation to ITA No. 696/Hyd/2009 for the assessment year 2002-2003. The ITAT's order was preferred against an order dated March 5, 2009, passed by the Commissioner of Income Tax (Appeals)-IV, Hyderabad, which in turn was against an assessment order dated September 19, 2007, passed by the Deputy Commissioner of Income Tax, Circle-16(2), Hyderabad. The assessee is Mentor Graphics (India) Pvt. Ltd. The appeal was filed under Section 260A of the Income Tax Act, 1961.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the monetary limits prescribed by the Central Board of Direct Taxes (CBDT) for filing appeals. The Revenue, represented by Ms. B. Sapna Reddy, argued that the appeal was filed under Section 260A of the Income Tax Act, 1961. The Respondent (assessee) was not present. The Court considered Circular No. 9 of 2024, dated September 17, 2024, which amended Circular No. 5 of 2024, dated March 15, 2024, by enhancing monetary limits for filing appeals to reduce litigation. The monetary limit for filing an appeal before the High Court was stated to be Rs. 2.00 crore.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD TUESDAY, THE EIGHTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENry FIVE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRTBUNAL APPEAL NO: 264 OF 2012 Appeal filed under Section 260(A) of the lncome-Tax Act., '1961, against the order dated 18-08-2009 passed in lTA.No. 696/Hyd/2009 for the assessment year 2002-2003 on the file of the Income Tax Appellate Tribunal Hyderabad Bench 'B', preferred against the Order dated 05-03-2009 passed in lTA.No. 106/DC- '- ': 16(2)lClT (A)-V l2OO7 -2008 on the file of the Commissioner of lncome Tax (Appeals)- IV, Hyderabad preferred against the Assessment Order dated 19-09-2007 passed in PAN/GIR No. AABCM5494O/IM-128 on the file of the Deputy Commissioner of lncome Tax, Circle-16(2), Hyderabad. Between: The Commissioner of lncome Tax-lV, Hyderabad ...APPELLANT AND Mentor Graphics (lndia) Pvt. Ltd, 6-3-552, Sri Ram Somajiguda, Hyderabad- 500082 ...RESPONDENT Counsel for the Appellant: Ms. B. Sapna Reddy, learned Junior Standing Counsel representing Sri J.V.Prasad, learned Senior Standing Counsel Counsel for the Respondent: Sri Ch. Pushyam Kirari (Not Present) The Court delivered the following JUDGMENT: ! :: I II

THE HON()URABLE SRT JUSTICE P.SAM KOSTIY AND TIIE HONOURABLE SRI JUSTICE NARSING RAI) NANDTKONDA TTTA N0.2640F 2OL2 JUI)GMEN "f : ty.,er Hon'ble Sri Justice P Sam Koshy) Hearr Ms. B.Sapna Reddy' learned Junior Standing Counsel lel)resenting Mr' J'V'Prasad' leamed Senior Standing Counsel for the [ncome 1.ax Department for the appellant. P<:rused the record. 2. This appeal under Section 260,4' of the lncome f rlx Act' 1961, has bee)n preferred by the Revenue as the allpellant against tht ortler dated 18'08'2009 passed by the Incorne Tax Appellate Trilrunal, Hyderabad Bench 'B" Hyderabad' in I.T.A.No.696/tfYD/2009 for the Assessment Year 2002-03 3. Cen ral lfoard of Direct Taxes (CBDT) has issued Circular No.9of2)24dated:.T.og.2o24,amendingthepreviousCircular No.5 of 2(t24 <lated 15.03-2024, by further enhancing the raonetary limits for filirlrl appeals by the Income Tax Department br:fore the Income I rx ,\ppellate Tribunals, High Courts and Suprerne Court I t

2 ...:.|' li as a measure for reducing litigation. In paragraph 2 of the said Circular, we find that the monetary limit fixed for filing an appeal before the High Court is Rs.2.00 crore. 4. In the instant appeal, tax effect is well below the monetary limit. 5. Therefore, the appeal filed by the Department is dismissed in terms of.,the aforesaid Circular No.9 of 2024 dated 17.09.2024. However,. if the appeal comes within the exception of Circular No.5 of 2024, it would be open to the Income Tax Department to seek revival of the appeal. There shall be no order as to costs. 6. Consequently, miscellaneous petitions pending, if any, shall stand closed. Sd/. C.V. MALLIKARJUNA VARMA ot T REGISTRAR ,,,1 //TRUE COPY// TION OFFICER The lncome Tax Appellate Tribunal Hyderabad Bench 'B', Hyderabad The Commissioner of lncome Tax (Appeals)-lV, Hyderabad The Deputy Commissioner of lncome Tax, Circle-16(2), Hyderabad' One Ci to Sri J. V. Prasad (SC FOR INCOIVIE TAX) [OPUC] One CC to Sri Ch. Pushyam Kiran, Advocate [OPUC] Two CD Copies o\tr To, 1. 2. 1) 4. 5. tt. pl VH/

HIGH COUIRT DATED: 18t0212025 JUDGMENI' lTTA.No.26,{ of 2012 DISMISSING ITTA i, t1 APB zo?s 2 C ir' l}rE S 14.r * ( l',. ( t'( )6, a -ep;;7r r 1r,l r _-<\ (r- lk ) z"ffsl"r- \ (-_-/ /

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